POS operators to increase charges over 50% telecom tariff hike

Point-of-Sale (POS) operators in Nigeria may soon increase service charges following the Federal Government’s approval of a 50% hike in telecommunications service tariffs.

The Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) disclosed this development, citing the impact of the tariff hike on their operations.

Ogungbayi Ganiyu, AMMBAN’s National Public Relations Officer, explained that mobile money agents rely heavily on telecom services, particularly data, for their transactions.

“The telecom tariff hike will impact the operations of our members. I am afraid this may also have a multiplier effect on service charges,” Ganiyu said.

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He added that while POS operators may try to absorb the additional costs, the financial strain could eventually force them to increase charges to sustain their businesses. “We have not sat down and looked at the latest tariff hike,” he stated, indicating that further deliberations would determine the next steps.

The National Association of Telecoms Subscribers (NATCOMS) has already vowed to challenge the Federal Government in court over the steep tariff increase, which marks the first adjustment in telecom charges since 2013.

With telecom services being the backbone of POS operations, the new tariff hike could create widespread implications for mobile money agents and their customers nationwide.

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